Adani Ports taps its largest ever domestic bond - Rs 5,000 crore 15-year NCD

Ahmedabad (Gujarat) [India], May 30 : Adani Ports and Special Economic Zone (APSEZ) on Friday announced it has successfully raised Rs 5,000 crore through a 15-year Non-Convertible Debenture (NCD).

Backed by APSEZ's strong financials and a 'AAA/Stable' domestic credit rating, the issue locked in a competitive coupon rate of 7.75 per cent per cent, and was fully subscribed by LIC, the Adani Group company said in a statement.

Debentures are long-term financial instruments that companies issue to raise more money from investors.

The debentures will be listed on the BSE.

The Adani Group company claimed that the NCD issue shows APSEZ's deep access to long-term capital from diversified sources at attractive pricing and significantly enhances APSEZ's debt maturity profile.

It added that the transaction highlights APSEZ's access to domestic markets for its longest tenure issuance to date, and one of the longest in Indian capital markets history.

The proceeds will fund a proposed buyback of APSEZ's US Dollar bonds, pending board approval on May 31, 2025.

A full subscription would extend the average debt maturity significantly longer, from 4.8 years to 6.2 years.

"This isn't merely a financing exercise; it's a proactive execution of a meticulously developed Capital Management Plan for APSEZ, focused on maintaining conservative leverage, extending the debt maturity profile, lowering cost, and diversifying funding sources. This plan is designed to support APSEZ with its long-term vision to become the world's largest integrated transport utility," said Ashwani Gupta, Whole-time Director and CEO, APSEZ.

APSEZ has set a target of handling 1 billion tonnes of cargo by 202-30, more than 2x the 2024-25 number.

APSEZ has seven strategically located ports and terminals on the west coast and eight on the East coast, representing 27 per cent of the country's total port volumes.

This extensive network provides capabilities to handle vast amounts of cargo from both coastal areas and the hinterland. Beyond India, the company is developing a transhipment port at Colombo, Sri Lanka, and operates the Haifa Port in Israel and Container Terminal 2 at Dar Es Salaam Port, Tanzania, significantly enhancing its international presence.

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